PROSPECTS FOR BUTTER

Poverty Bay Herald, Volume LX, Issue 18191, 12 September 1933, Page 8

PROSPECTS FOR BUTTER

A VERY BRIGHT OUTLOOK KIA ORA CONGRATULATED POLICY OP CONSIGNMENT A bright outlook for the butter market was indicated at the annual meeting of the Kin, Ora O-operative Dairy Company, Limited, to-day in a brief address t»y Mr. C. Motion, Auckland representative of the company’s London agents, Messrs. Lovell and Christmas, Limited. The speaker also said that the Kia Ora payment for the season was the best he had seen for any dairy company in the Auckland province. Mr. Motion considered that the great increase in production everywhere was ono of the main causes for making the past season the worst in the history of the industry. Australian production, reaching 160,000 tons last year, with exports totalling 90,800 tons, had been ono of the biggest factors in the increased production. Not so many years ago, New Zealand sometimes sent butter to Australia. News of New Zealand’s increased production at the beginning of last season had caused low forward buying, which had let the market fall much lower than it should have done. Even tho low retail prices down to 9d per lb. in England did not raise consumption sufficiently. There had not been any great increase in tho consumption of edible fats, and the greater butter consumption was at tho expense of margarine. HOLDING OFF MARKET Tho company, lie added, had every reason to lie proud of the long-sighted policy of its directors, who knew that the market usually rose about August and September. They had held off the market for a time, witli the result that they were able to meet a market that was now up to 995. Consignment had proved to have been a sounder policy at the end ot' the past season, compared with the f.o.b. sales. One thing that had helped in the upward movement was that Australia had had a dry autumn and winter, and it seemed as though there were prospects of higher prices. Australia seemed as if it was in for an off season, and this should give better results for New Zealand. He believed that prices would gradually improve. With an improvement in wool and mutton at the same time, it appeared as though conditions would generally become better. He did not think that there would be any exceptionally high prices unless European countries went to war and caused a keen demand for fats, but then there would be a. 'reaction afterwards. 'Dint always happened after a war. A COMPARISON In conclusion, he. said that the directors had put a first-class balance-sheet before them, and the final figures were a long way better than any others lie had seen. Some of the companies up north had sold on an f.oJb. basis, but Kia Ora had had the advantage of the rising l market recently and the stock that had been held to meet this.

In reply to a question, Mr. Motion said that the Rta Ora pay-out was the ■best he had seen. He had heard 'that the Ruawni company, North Auckland, had sold on an f.o.b. basis and that it had made a high pay-out, but he had not seen the balance-sheet, and did not, know what deductions had been made. Tho Kia Or,a returns for the season’s produce would equal, if not be better, than any other Auckland province dairy company whose balance-sheet lie had seen.